If the Price Level Falls by 5%,then All Else Being

question 25

Multiple Choice

If the price level falls by 5%,then all else being equal,the long-run aggregate supply curve will:

• A) remain unchanged.
• B) shift to the right to reflect an increase in output of 5%.
• C) shift to the right to reflect an increase in output of more than 5%.
• D) shift to the left to reflect a decrease in output of 5%.
• E) shift to the left to reflect a decrease in output of more than 5%.

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Definitions:

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs.

Correlational Method

A research strategy that examines the extent to which two variables are related, without inferring a causal relationship between them.

Variable Predicts

Indicates how one measured factor can forecast the outcome or changes in another factor, often used in statistical analysis to determine relationships between variables.

Double-blind Procedure

A research method in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.